Tax Goddess PLLC, STC ( Strategic Tax Coaching Program) Agreement
Effective Date: Jan 1, 2025
Version: 1.0
These Terms & Conditions are an integral part of the Engagement Letter you have signed with Tax Goddess, PLLC (“Tax Goddess”). By signing our Engagement Letter and agreeing to our terms and continuing to use our services, you acknowledge that you have reviewed these materials and understand that they contain important policies related to the effective use of our programs and services.
We will prepare your Strategic Tax Coaching Program with information which you will provide to us. We will make no audit or other verification of the data you have submitted and we perform our services under the assumption that all of the information you submit to us is true, timely, complete and accurate according to documents and other information retained in your files (particularly auto, travel, hours in specific industries [typically real estate] and meals & entertainment expenses). We will perform the services in accordance with applicable professional standards issued by the American Institute of Certified Public Accountants.
While it is not necessary that you provide us with supporting documents at the time we prepare your Strategic Tax Coaching Program, you should retain all necessary written support and documentation that may be required by an IRS, AZDOR, or other state authority examination at a later date.
We will furnish you with questionnaires and/or worksheets to guide you in gathering the necessary information. Complete and organized data will assist us in making sure that we have obtained maximum tax deductions available with the knowledge currently available in writing. As a result, you agree to indemnify and hold our firm and any of its partners, principals, shareholders, officers, directors, members, employees, agents or assigns harmless with respect to any and all claims arising from the use of the Strategic Tax Coaching Program for any purpose other than as a guideline for making modifications to your current taxing structure.
We are only responsible for positions taken in our Strategic Tax Coaching Program and not for those on returns or other documentation for previous or future years prepared by another firm or preparer.
Tax Goddess, in its sole professional judgment, reserves the right to refuse to take any action that could be construed as making management decisions or performing management functions. We will not perform management functions or make management decisions for you. However, we may provide advice, research materials, and recommendations to assist your management in performing its functions and making decisions within the scope of this engagement. You agree that you will not and are not entitled to rely on any advice unless it is provided in writing.
You authorize Tax Goddess to accept instructions from your representative for this engagement.
We will use our professional judgment to resolve any questions involving application or interpretation of tax laws. We will resolve such questions in your favor if there is reasonable justification for it within our professional standards and guidelines. You have the final responsibility for your work as prepared by us in all instances and, therefore, you should review the work carefully before you sign anything and or agree to any changes made.
Whenever we are aware that a possibly applicable tax law is unclear or there are conflicting interpretations of the law by authorities (e.g., IRS and courts), we will explain the possible positions that are arguable based on the facts and circumstances presented in your complete and accurate information as well as any then current tax court cases, regulations, and other materials that may assist in the evolution of interpretations from the various sources. We will follow the position you choose, provided it is consistent with our understanding of the current codes, regulations and their interpretations, and that this position does not contradict any legal or regulatory requirements of us as CPAs and that it does not exceed your stated risk / aggression level as presented to us. If the IRS or state tax authorities later contest the position taken, there may be an assessment of additional tax, interest, and penalties. We assume no liability for your choice made from the various options, and you hereby release us from any such additional tax, interest, and penalties or other fees and assessments. You are solely responsible for the outcome and the benefits and consequences thereof.
If you wish to take a tax position based upon the advice of another tax advisor, you agree to obtain a written statement from the advisor confirming that the position should meet the substantial authority, or “more likely than not” standards, as applicable. In preparing your U.S. income tax return, we are subject to a reasonable practitioner standard as defined in revisions to Circular 230. To the extent a position is based upon the advice of another tax advisor, prior to preparing or signing the tax return, the AICPA SSTS §100 also requires our firm to have a good faith belief that the position has, at a minimum, a realistic possibility of being sustained administratively or judicially on its merits, if challenged. You agree to pay additional charges incurred by the firm to perform required research. You agree to hold Tax Goddess harmless in all ways if the position is later deemed unallowed or triggers penalty, interest, or other costs to you or your businesses.
When considering the investment related tax strategy suggestions that within this tax plan, please be aware that you will typically become a partner in an investment, a specific piece of entity ownership; you will typically receive a K-1 from this investment that will apply against your other income. As a Certified Public Accountant (CPA) firm, we are required to disclose that we are not a licensed investment advisor and we do not provide investment advice. While we may guide on financial matters, including investments, it is important to note that you should make any investment decision after conducting your own thorough research and due diligence. Investing in any arena involves significant risks including, but not limited to fluctuation in value, potential gains or losses, a complete loss of your investment, etc. It is crucial to understand that you should not invest money you cannot afford to lose. You must review all investment opportunities on your own merit and seek advice from a licensed investment advisor if you have questions or concerns.
By proceeding with any of the various tax strategy investment options outlined by our team, you acknowledge and accept these terms and conditions and agree to hold Tax Goddess harmless in any and all manners.
Tax Goddess is committed to developing tax strategies that align with your business goals and documented risk profile. We understand that tax laws are complex and subject to differing interpretations by tax authorities, meaning that every tax position, from the most conservative to the most advanced, carries a degree of inherent risk of being challenged upon audit. The Client understands that, regardless of the approach, tax returns are subject to review by government authorities, and any tax position may be challenged.
By selecting your desired risk level as documented in the Pre-Lim Checklist, you knowingly and voluntarily accept all inherent risks associated with that chosen strategy. You further agree to be fully responsible for the consequences of your chosen strategy, including but not limited to any assessed penalties, interest, or additional tax liabilities that may arise from a challenge by a tax authority.
In the event that a tax return is selected for audit or a position is challenged, Tax Goddess will provide guidance and support strictly as defined in the “Audit and Examination Services” section of this Agreement. The Client agrees to provide full cooperation and all accurate, timely information necessary to support the tax positions taken.
This clause does not limit or waive the Client’s right to seek recourse for damages directly resulting from Tax Goddess’s gross negligence or willful misconduct in the performance of services under this Agreement.
Your fee, set forth on page 1 of this agreement, is determined based on the information that you provided to us at the outset of our engagement.
All our clients fees are payable via the payment method reflected in this document or any other payment method that you will authorize us (in writing) to use. We will not begin working on your STC program without payment method information on file and in active status (no bounces, holds, etc.). If any payment bounces or has other payment processing issues we will provide a 5 business day timeframe for the client to correct the payment issue before any work is put on hold. We note that the hold may be more immediate if a deadline is looming. If a bounce occurs we will charge your account for the bounce fee. For any bounced or declined payment we will try to re-run the payment 3 times. Any additional bounce, NSF, or other fees will be added to your outstanding balance.
The fees for this engagement type are due in full before we will proceed with the work. When we bring on a client with the above listed needs & requirements, we allocate resources, staff, and systems to handle this type of work. In signing this engagement letter you begin a chain of work, events, allocations, and scheduling. Please note that per this engagement letter, we do not offer refunds of any kind for our contracted services, all of which are billed with your permission per the signing of this agreement. If there are any credit card charge backs you will be invoiced for the fee and any bank fees associated with the chargeback. You hereby ratify your understanding that all services provided are non-refundable and waive any rights to charge back your purchase with your credit card or payment processor. There will be no refunds of any kind and the Client waives their right to dispute in any way.
Any fees that are not paid by the due date of your invoice (or signed agreement authorizing work) plus 30 days will be sent to our collections agency at our discretion. By virtue of not paying us within the agreed upon terms you understand and agree to pay any then necessary court costs, attorney fees and any and all collection agency fees that come due on any outstanding balances over (30) thirty days past due.
If there are any outstanding balances over (30) thirty days past due, you agree to pay 2% interest per month.
If your ACH/payment method fails to process, Tax Goddess reserves the right to charge a thirty-five ($35) per event fee (as charged by our ACH/payment processor for failed payments, NSF, returns, etc.). Please note that if the 1st of any given month falls on a weekend, the billing for that month will fall to the nearest business day.
All disputes between the Parties arising out of or relating to this Agreement and the relationship between the Parties, whether tortious or contractual in nature, will be subject to mandatory mediation in front of a mutually agreeable mediator. The mediator will be an attorney licensed in the state of Arizona. Any mediation, if necessary, will take place in Maricopa County, Arizona, unless otherwise agreed to by the Parties. The Parties will split the cost of mediation. Either Party may appear remotely at mediation if the mediator agrees to such process. To invoke mediation, the complaining Party must send the other Party a demand for mediation, along with three suggested mediators. The responding Party must respond to the mediation request within thirty (30) days with an agreement to utilize one of the suggested mediators or three alternative suggested mediators. Thereafter, the complaining Party will have fifteen (15) days to agree to one of the responding Party’s suggested mediators. If the Parties cannot agree upon a mediator, the responding Party will select one of the complaining Party’s mediators to appoint an alternative mediator. If mediation is unsuccessful, all disputes between the Parties arising out of and/or relating to this Agreement and the relationship between members, whether tortious or contractual in nature, will be subject to private binding arbitration. The Arbitrator selected will be an attorney licensed in the state of Arizona. To invoke arbitration, the complaining Party must send the other Party a demand for arbitration, along with three suggested arbitrators. The responding Party must respond to the arbitration demand within thirty (30) days with an agreement to utilize one of the suggested arbitrators or three alternative suggested arbitrators. Thereafter, the complaining Party will have fifteen (15) days to agree to one of the responding Party’s suggested arbitrators. If the Parties cannot agree upon an Arbitrator, the responding Party will select one of the complaining Party’s arbitrators to appoint an alternative Arbitrator. Any arbitration instituted pursuant to this paragraph will take place in Maricopa County, Arizona, unless otherwise mutually agreed to by the Parties. The Parties will split the cost of arbitration but, the Arbitrator may award the costs of arbitration (including the Arbitrator’s fees) to the successful Party at the conclusion of the Arbitration. Each Party agrees that it may not initiate any mediation or arbitration for any claims unless and until it has first given the other specific written notice of each claim and a reasonable opportunity to cure any default or defect after such notice. However, nothing in this Agreement will prevent a Party from applying to and obtaining from any court having jurisdiction a writ of attachment, temporary injunction, preliminary injunction, permanent injunction, or other relief available to safeguard and protect the Party’s interest prior to, during or following the filing of any arbitration or other proceeding or pending the rendition of a decision or award in connection with any arbitration or other proceeding.
Exclusions from Arbitration: The following matters are excluded from the requirement for arbitration hereunder: (i) any action brought in the Small Claims Division of an Arizona Justice Court (up to $3,500) so long as the matter is not thereafter transferred or removed from the small claims division.
We reserve the rights to cease work/terminate engagement for any reason. Examples of reasons for cessation of progress/termination of engagement are nonpayment of fees; conflicts of interest typically but not always related to separating partners or spouses; incorrect or incomplete information; lack of information; perceived ethics issues; non responsiveness by the client to communications or directions from our team.. Depending on the reason behind the stop of work fee processing may be halted at the sole discretion of Tax Goddess. Note that no refunds will be given for any reason. This paragraph also applies if you, the client, decides to terminate for any reason.
On termination of the engagement, for any reason, all pending work, for which we have complete information, will be concluded as per the initially set schedule (up to 24 months estimated timeline from the date this engagement letter was signed), unless stated otherwise in the termination letter. On termination of the engagement, we reserve the right to completely and permanently stop work on any and all pending items from the termination if you do not provide any and all the missing information and files requested by our team within seventy-two (72) business hours of said request.
Federal, state and local taxing authorities impose various penalties and interest charges for non-compliance with the law, including for example, failure to file or late filing of tax returns and underpayment of taxes. You, as the taxpayer, remain responsible for the payment of all taxes, penalties, and interest charges imposed by taxing authorities.
We rely on the accuracy and completeness of the information you provide to us in connection with the preparation of your Strategic Tax Coaching Program. Failure to disclose or inadequate disclosure of income or tax positions can result in the imposition of penalties and interest charges. Penalties, interest, fines, and other charges can change every year. We recommend that you review the IRS.gov website for details each year.
Your privacy is very important to us at Tax Goddess. We are providing this statement to inform you about the types of information we collect from you, and how we may disclose or use that information in connection with the services we provide as required by applicable laws in the State of Arizona. During the course of providing our services to you, we may offer you various other services that may be of interest to you based on our determination of your needs through analysis of your data. Your use of the services we offer constitutes a consent to our disclosure of tax information to the service providers. If at any time you wish to limit your receipt of offers based upon information you provide, you may email us at shauna@taxgoddess.com to inform us of the limitations.
As your CPA, we collect information provided by you from your tax organizer, worksheets, documents and discussions and information that we develop as part of the engagement. We are required to keep all information about our engagement confidential so we will not make any disclosure about you unless we have your approval or are required / permitted by law. This applies even if you are no longer a client. We are committed to safekeeping of your confidential information and we maintain physical, electronic, and procedural safeguards to protect it.
In connection with this engagement, we may communicate with you or others via email transmission, text messaging, or other electronic methods. As these communications can be intercepted and read, disclosed, or otherwise used or communicated by an unintended third party, or may not be delivered to each of the parties to whom they are directed and only to such parties, we cannot guarantee or warrant that communications from us will be properly delivered and read only by the addressee. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for interception or unintentional disclosure of emails, text messages, or other electronically transmitted methods of communication by us in connection with the performance of this engagement. In that regard, you agree that we shall have no liability for any loss or damage to any person or entity resulting from the use of email, text, or other electronic transmissions, including any consequential, incidental, direct, indirect, or special damages, such as loss of revenues or anticipated profits, or disclosure or communication of confidential or proprietary information.
Confidentiality privileges related to taxpayer communications under IRC Section 7525 provide a limited confidentiality privilege covering certain tax advice embodied in taxpayer communications with federally authorized tax practitioners in certain limited situations. This privilege is limited in several important respects. For example, this privilege does not apply to your records, which you are required to retain in support of your tax return. In addition, the privilege does not apply to state tax issues, state tax proceedings, private civil litigation proceedings, or criminal proceedings. While we will cooperate with you with respect to the privilege, asserting the privilege is your responsibility. Inadvertent disclosure of otherwise privileged information may result in a waiver of the privilege.
The IRS and state governments can impose penalties & interest for many reasons including, but not limited to, delinquent payment, late filing, underpayment, understatement of tax, and so forth. Tax Goddess is not responsible for any reason for any penalties & interest that you may incur.
In relation to positions taken on a return that may cause penalties for understatement of tax:
For corporations, the IRS imposes a 20% penalty for substantial understatement of tax. The understatement is considered substantial if it exceeds the lesser of 10% (or if greater, $10,000) or $10,000,000 for corporations. For individuals, the IRS imposes a 20% penalty for substantial understatement of tax. The understatement is considered substantial if it exceeds the larger of 10% of the correct tax liability or $5,000 for individuals.
To avoid the substantial understatement penalty, you must have substantial authority to support the tax treatment of the item challenged by the IRS or adequate disclosure of the item. Adequate disclosure requires proper disclosure of the position on the tax return and there must at least be a reasonable basis for the position. A completed IRS Form 8275 or 8275-R, which discloses all relevant facts, must be attached to your tax return to meet the adequate disclosure requirement. A disclosed tax position that meets the reasonable basis standard will have an approximately 10% or greater chance of success if challenged.
This means that there must be some authority supporting the position and more than just arguable. You agree to advise us if you wish to disclose a tax treatment(s) on your return. You may request our assistance to identify or perform further research at additional cost to ascertain if there is substantial authority for the proposed position to be taken on the tax items in your return(s). If you so request, we would be pleased to discuss providing this additional service to you under the terms of a separate engagement letter.
Unless an undisclosed tax position meets the substantial authority or more likely than not standards, as applicable, we will be unable to prepare the return and will withdraw from the engagement.
If we conclude as a result of our research that you are required to disclose a transaction on your tax return, you consent to attach a completed Form 8275 or 8275-R to your tax return for filing after we discuss the situation with you. You also agree to hold our firm and any of its partners, principals, shareholders, officers, directors, members, employees, agents, or assigns harmless for any and all actual and consequential damages (including but not limited to taxes, penalties, interest, and attorney’s fees and costs) that you incur as a result of including such disclosures with your filed tax return(s) regardless of the nature of the claim, including the negligence of any party.
If a tax position to be taken on your tax return is based on the advice of another tax advisor, you agree to obtain a written statement from the advisor confirming that the position should meet the substantial authority or more likely than not standards, as applicable.
We may choose, at our will, to pay for penalties related to an error on our part only. Once your information has been submitted to us, and we prepare a tax return and provide it to you to be filed, any changes you make thereafter are not mistakes and you are subject to any penalties and interest imputed. Due to this policy, we require all tax information to be submitted to Tax Goddess in writing (email, clickup chat, slack, text (SMS), fax, via physical documents, or in any other manner written).
Our programs may require significant time & effort in order to achieve the maximum benefit to you. It has been our historical experience that most clients will need to invest between 20-80 hours / year on this program. It can be considerably more and it can be less depending on the complexity of the plan and the strategies necessary to completely implement this plan. This could include, but is not limited to, time spent providing information, answering questions, speaking to our team, speaking to partners we refer, implementing the plan strategies themselves, etc.
You should retain all documents that provide evidence and support for reported income, credits, and deductions on your returns as required under tax law. You are responsible for the adequacy of all such documents. You represent that you have such documentation and can produce it if needed to respond to any audit or inquiry by taxing authorities. You agree to hold us harmless with respect to any additional taxes, penalties, or interest imposed on you by taxing authorities resulting from the disallowance of tax deductions due to inadequate documentation.
Unless we are otherwise advised in writing, you confirm that your personal expenses are segregated from business expenses and expenses such as meals, travel, entertainment, vehicles use, gifts, and related expenses are supported by necessary records required by the IRS. At your request, we are available to answer your questions and advise you on the types of records required. You agree that you will not and are not entitled to rely on any advice provided regarding these IRS required records unless in writing.
If you provide our firm with copies of brokerage (or investment advisory) statements, we will use the information from these statements solely in connection with the preparation of your Strategic Tax Coaching Program. We will rely on the accuracy of the information provided in the statements and will not undertake any action to verify this information. We will not monitor investment activity, provide investment advice, or supervise the actions of the entity or individuals performing investment activities on your behalf. We recommend that you review all brokerage (or investment advisory) statements promptly and carefully, and direct any questions regarding activities on your account to your broker (or investment advisor).
If we become aware of records, documents, explanations, or other information, including significant judgments, used in preparation of the Strategic Tax Coaching Program that are incomplete, inaccurate, or otherwise unsatisfactory, we will bring this information to the attention of management and request additional or corrected information.
By signing our Engagement Letter and agreeing to our terms you are confirming to us that you have a strong set of internal controls within your business to find, trace, and prevent errors, fraud, theft or other malfeasances.
Purpose: This section outlines specific actions the client agrees to undertake to achieve the tax savings goals discussed during the initial consultation and throughout the engagement with Tax Goddess. These actions are critical to realizing the anticipated Return on Investment (ROI) from the strategic tax planning services provided. Without action being taken, results cannot be assumed and By signing our Engagement Letter and agreeing to our terms, the client agrees, understands, has no outstanding questions, concerns, or other hesitations in moving forward with this engagement.
Transparency and Communication: Effective communication is key to making our collaboration successful. We encourage you to keep us updated with any changes in your financial situation, tax status, or other relevant circumstances that might affect our strategies. Feel free to reach out with any questions or concerns, and be sure to respond promptly to our requests for information or documentation. This ongoing dialogue helps ensure we’re on the same page and can adapt our strategies as needed to achieve your tax-saving goals. Remember, your proactive engagement is vital to realizing the anticipated ROI from our strategic tax planning services.
The Client acknowledges that active participation in scheduled meetings and adherence to the established communication protocols are critical to the success of the tax strategies and overall program provided by Tax Goddess.
The Client agrees to the following:
The Client understands that communication via email or any other platforms not explicitly listed (e.g., phone calls outside of scheduled Zoom meetings, other messaging applications) will not be accepted or monitored for engagement purposes,except for the backup delivery of the final work product.
The Client acknowledges that failure to comply with these obligations may compromise the effectiveness of the services provided by Tax Goddess and result in reduced or forfeited outcomes. Tax Goddesss shall not be held responsible for any adverse impacts arising from the Client’s failure to attend meetings or adhere to communication protocols.
By signing our Engagement Letter and agreeing to our terms, the Client confirms their understanding of the critical nature of these requirements and commits to full participation and adherence.
